Samvardhana Motherson is likely to raise $1 billion through a Qualified Institutional Placement (QIP), reported CNBC TV18, citing unidentified sources. The QIP by the auto components maker is likely to be launched soon, and the proceeds may be utilised either for an acquisition or to reduce its existing debt, the report said.
At the time of publishing, the stock was trading at Rs 192.93 apiece on the NSE, down marginally by 0.15 percent.
The company has appointed bankers for the likely QIP and the roadshow may begin soon. As per report, Samvardhana Motherson is looking to reduced debut to 1x EBITDA against 1.5X at present.
The company's gross debt stood at Rs 20,114 crore and net debt at Rs 13,370 crore, as of the first quarter in the current fiscal. It's gross debt increased by 16 percent and net debt by 29 percent on a sequential basis in June quarter.
The company has also been looking at acquisitions. The company in August gave a final dividend to its shareholders. The large cap company has a market cap of Rs 1,31,256.63 crore.
As per the data available on the BSE, the stock is up 83.26 percent in 2024 so far. The counter delivered multibagger returns in the last two years rising 131.04 percent.
As many as 4.92 lakh shares changed hands generating a total turnover of Rs 9.46 crore till 12 PM.
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